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Are you in need of a Transfer of Equity with a Intelligent Finance mortgage? Failing to check that a lawyer is on the Intelligent Finance list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

Recently asked questions relating to Intelligent Finance transfer of equity

  • As things stand I have a joint Intelligent Finance mortgage with my cousin and am investigating the option of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to buy somewhere with my partner. The outstanding mortgage is about 200k, and the property value is approx 600k. Is this a transfer of equity? Is land tax due?
  • Is it possible to transfer the equity held in my property with my Intelligent Finance home loan?
  • What do I do if I am dissatisfied with the lawyer who handled my transfer of equity transaction?
  • Is it possible to apply to borrow more money from Intelligent Finance as part of a Transfer of Equity?
  • I am selling my share of a property in Birmingham to my co-owners fiance, they are reapplying to Intelligent Finance. We are debating as to who must pay the costs of the transfer of equity. Is this usually shared or is one party obliged to cover the costs of?
  • I am answering a Intelligent Finance transfer of equity application and have come to the section concerning defaults etc. There are some debts that I have been reducing since 2007, I understand that they no longer remain my credit records. Am I obliged to set these out?
  • Me and my partner jointly own a property in Friern Barnet . Home loan is with Intelligent Finance. I want to transfer full ownership to him with no payment of money but without using a lawyer. Is this likely to be easy to so?

Sample of questions in a conveyancing solicitor questionnaire concerning a Intelligent Finance Transfer of Equity

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Who will be responsible for the costs of the Transfer of Equity?

Please provide a copy of your National Insurance Number?

Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?

Please give the details of anyone to be extracted from the title deeds?

Please confirm where you are making any payment for the Transfer of Equity and to whom and notify us the amount?

Important warnings to consider in supporting the above Intelligent Finance transfer of equity Questions and Answers :

Tax and Legal

There may be various tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Intelligent Finance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to an Order of the Court, then Insolvency Indemnity Insurance is not required. In other situations, where a property is being transferred at less than market value between joint owners, an Insolvency Act Indemnity Insurance policy may be required. This is something that that your conveyancer will check with Intelligent Finance This is because, if the outgoing party is made bankrupt in the future, their Trustee in Bankruptcy could argue that they had transferred the property in order to avoid their creditors and apply to the Court to have the transaction set aside. If this happens, it could affect your lender or a future buyer from you as they would lose the property and the lender may not get back what they have loaned to you. The Insolvency Act Indemnity Insurance policy only protects lenders such as Intelligent Finance or future buyers from you. If there is no mortgage and the outgoing owner is made bankrupt, there is a risk to you that you could lose your home if the transfer is set aside. The cost of the Insolvency Act Indemnity Insurance policy is dependent on the market value of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Intelligent Finance your property may be repossessed.

Preparing the Transfer of Equity with a Intelligent Finance Mortgage

When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Intelligent Finance is joining in the transfer to release someone from liability, put the release in the ‘additional provisions’ panel if someone is entering into a covenant relating to the charge, place it in the ‘additional provisions’ panel stamp duty land tax is not payable when there is no chargeable consideration for the transfer (Schedule 3, paragraph 1 of the Finance Act 2003). In the case of a transfer subject to a charge (even if the transfer is by way of gift) or if a property has been transferred for no value and there is an associated discharge, HMRC would view this as an assumption of an existing debt by the purchaser (Schedule 4, paragraph 8 of the Finance Act 2003) and stamp duty land tax may be payable if you wish you may state in the ‘additional provisions’ panel that ‘This transfer is made subject to a charge dated… in favour of…’

On form AP1, your conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided on this webpage is for general information and only applies to England and Wales. It should not be regarded as advice for members of the public who should contact their lawyer,mortgage broker, insurer and accountant for specific advice relating to transfer of equity. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.


Frequently asked questions relating to Intelligent Finance transfer of equity